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The Ethereum price consolidation weakened as the bulls lost momentum, resulting in a loss of nearly 4% over the past 24 hours and a 7% decline on the weekly chart. Technical analysis indicates significant bearish pressure.
The value of the coin remained unchanged at around $1,800, which led to a decrease in interest from buyers and a significant decrease in demand and accumulation. As Bitcoin fell below $26,000, the major altcoins also experienced significant declines on their daily charts.
To break down resistance, Ethereum requires significant buy-in, as failure to do so could result in the loss of a critical level of support.
In addition, Bitcoin needs to recover and reach the $27,000 zone for ETH to start a short-term recovery. The decline in the market capitalization of Ethereum suggests a gradual exit of buyers from the market.
Ethereum Price Analysis: One-Day Chart
Ethereum was worth $1,770 on the 1-day chart | Source: ETHUSD on TradingView
At the time of writing, ETH is worth $1,770. After struggling in the $1,800 range, the selling pressure eventually took over. The resistance levels of the coin were determined at $1798 and $1821. Conversely, if the price continues to decline, the bulls will try to protect ETH at $1,740.
However, failure to hold above $1,740 will send Ethereum down to $1,690. Further decline will break through the $1,540 support line. In addition, the recent session saw a significant increase in selling strength, which was reflected in the red trading volume of Ethereum.
Technical analysis
Ethereum registered a significant drop in purchasing power on the 1-day chart | Source: ETHUSD on TradingView
After declining from the $1,800 range, ETH experienced a significant sell-off with no recovery in purchasing power. The Relative Strength Index (RSI) fell below 40, indicating that accumulation is decreasing and approaching the oversold zone.
Additionally, ETH fell below the 20-simple moving average (SMA) line, indicating that sellers have spurred market momentum. If ETH successfully breaks the nearest resistance level, there is a possibility of a move above the 20-SMA line.
Ethereum spotted a sell signal on the 1-day chart | Source: ETHUSD on TradingView
Several technical indicators on the Ethereum daily chart have started showing sell signals. One such indicator is the Awesome Oscillator, which not only reflects price momentum, but also identifies potential trend reversals.
In this case, the indicator displayed growing red histograms below the half-line, indicating sell signals for the altcoin. This suggests a potential decline in price before any recovery occurs.
Another indicator, the Bollinger Bands, which show price fluctuations and volatility, have begun to widen. This expansion suggests that Ethereum may face increased price volatility and fluctuations in the upcoming trading sessions.
This increased volatility indicates the possibility of significant price movement in either direction. Ethereum needs to collapse, overcoming its immediate resistance, in order to stop the bears. In addition to this, broader market power will also prove to be decisive for ETH.